From false identities to phony companies to . . .

As credit unions compete more aggressively for small business loans, one expert believes many are moving too quickly and not paying attention to risk from fraudsters who are increasing their attacks in the space.

He said crooks are creating false identities and phony companies to secure loans from lenders without ever intending to make even one payment.

“Small business lending is an emerging target for crooks,” said David O’Connell, senior analyst at Aite Group.

O’Connell told CUToday.info there has been limited data related to small business lending fraud, which is why he recently completed a study on the subject in partnership with the Small Business Financial Exchange.